Smart grids and Internet

If we look back, we realise that most of the electricity grids in Europe are more than 30 years old and were built on the premise of energy flows circulating from the large power plants to the consumer. Flows circulating unidirectionally. The electricity system thus conceived has functioned over the years in a very efficient manner and with high quality indices. However, in recent years we have been immersed in a profound change, a paradigm shift in the electricity system. We could go so far as to say that we are in the midst of a true revolution. If we analyse the causes that are leading to these changes, we find that the transformation of the system is based on the need to protect the planet, reducing greenhouse gas emissions and the need to use alternative, clean and inexhaustible energy sources. In other words, achieving a low-carbon energy system. And this major objective has been the starting point for most countries to begin to adopt a series of measures and changes that will enable them to achieve the planned objectives.

Smart grids are a necessary condition for meeting the renewable energy penetration targets, as well as the integration of new agents in the system, such as electric vehicles or storage systems. And what is a smart grid? It is one that is capable of efficiently integrating and coordinating the needs and behaviour of all generators, grid operators and end users. In other words, we are moving from the initial unidirectional model to a bidirectional system where energy flows circulate both from the generator to the consumer and vice versa. This new scheme leads to the emergence of new roles for citizens, such as that of prosumers (the union of producer and consumer). In other words, we go from being mere passive consumers to being able to participate in the system as active elements of the network. In the EU’s opinion, this figure will allow consumers to participate directly in obtaining their energy supply from renewable sources.

In order to achieve this, it is necessary to implement a series of technological advances both at the level of the elements that make up the grid and in terms of communication technologies. Electricity infrastructures will have to be equipped with elements to improve control over transmission and distribution networks, as well as advanced metering systems such as smart meters, which are currently being implemented nationwide. Another key element is energy management. The development and implementation of intelligent management systems will allow the system to be operated in the most efficient way, not only at the global system level, but also at the user level. For example, we will be able to know the price of electricity at any given moment, which will allow us to adopt energy efficiency measures. The impact that the Internet of Things (IoT) is already having on the energy sector is similar to the impact it is having on other industrial sectors. According to Rifkin in his book The Zero Marginal Cost Society, the IoT will enable the convergence of energy, communications and transport.

To sum up: I believe that smart grids will contribute to achieving the 3Ds: Decarbonisation, Decentralisation and Digitalisation. Smart grids are expected to develop considerably during this decade. Some analysts predict that by 2020 there will be a 3.5-fold increase in Smart Grid investments compared to 2012 and a shift from selling only kWh to providing energy products and services.

Going slightly into more technical aspects and simply as a note, microgrids are part of the concept of smart grids. By way of analogy, I consider microgrids to be the first step in the Smart Grid concept. CERTS defines a microgrid as an aggregation of loads (including industrial parks, technology parks, large leisure centres and urban or rural areas, etc.) and microgenerators operating as a single system providing both electricity and thermal energy. In other words, a microgrid will be made up of generation sources (mainly renewables), energy storage systems and connected loads that can operate both grid-connected and stand-alone. The development and implementation of microgrids, in addition to increasing the penetration rate of renewable energies in the electricity system, will have multiple advantages over the current energy landscape. The extensive use of microgrids will favour the reduction of energy transmission losses, thanks to the proximity of the generation systems to the consumption points. Microgrids also introduce their own generation systems into local medium-voltage grids, so that with a correct approach to internal control criteria, a more stable and efficient behaviour of the local grid will be achieved. Finally, at the level of the consumers associated with the microgrid, their energy independence is promoted, an aspect that has a positive impact on their electricity bills.